Numerous economic planners will tell you the correct way to save for retirement is to begin young and consistently put aside a part of your salary into a retirement savings vehicle. And several people definitely do this. But when you are like many of us, you didn't save as much as you can, and today you are searching for some last minute retirement choices.
On one hand, you can save more. However that isn't necessarily a plausible retirement options if you're already having problems paying your residing expenses. More urgent goals, such as paying your mortgage and medical care expenses, or helping out your kids and grandkids, may be extending your spending budget. Around 58% of People in America age 55 and older have less than $100,000 in their retirement personal savings, based on the Employee Benefit Research Institute's newest Retirement Confidence Survey . Only 19% have $250,000 or more of retirement savings.
Which means you may need to adjust your retirement age or think about planning to a less expensive area.
Relocating? To many, that might seem drastic. You like where you reside. You've built a life there. You're near to your kids and grandkids. However based on where you reside now, and exactly where you move to, it could significantly influence your quality of life and permit a reduced retirement age.
This kind of a move may even include warm climate and palm trees, but even more importantly, relocating from a high-cost region to 1 with a considerably reduced cost of living. Doing so can make the difference between an early retirement age and working for several more years - particularly if you have significant equity in your home that may bootstrap your move. Let us say you've $50,000 a yr to live on in retirement, and you presently live in Oakland, California. What will occur in the event you relocate to Bradenton, Florida? According to Bankrate.com , you can take a 33.21% decrease in your retirement income and nonetheless preserve your standard of living. Just compare some of the prices between the two areas.
Cost of living comparison
| Oakland, CA | Bradenton, FL | |
| Home price | $669,083.00 | $299,138.50 |
| Mortgage payment | $3,089.74 | $1,370.46 |
| Apartment rent | $1,389.00 | $769.00 |
| Gasoline | $2.94 | $2.81 |
| Doctor visit | $89.80 | $78.50 |
| Optometrist visit | $119.75 | $73.60 |
| Men's shirt | $39.19 | $24.10 |
This kind of a move may even include warm climate and palm trees, but even more importantly, relocating from a high-cost region to 1 with a considerably reduced cost of living. Doing so can make the difference between an early retirement age and working for several more years - particularly if you have significant equity in your home that may bootstrap your move. Let us say you've $50,000 a yr to live on in retirement, and you presently live in Oakland, California. What will occur in the event you relocate to Bradenton, Florida? According to Bankrate.com , you can take a 33.21% decrease in your retirement income and nonetheless preserve your standard of living. Just compare some of the prices between the two areas.
In fact, there were only a few things that cost more in Bradenton than in Oakland, including energy, which was $120.69 and $167.03, respectively. (Guess it's all the air conditioning.)
The main element, if you are considering this strategy, would be to discover a community with a strong economy in addition to opportunities for an enjoyable way of life. The latter will depend on what you enjoy, but may include warm weather, a chance to access cultural activities, or other retired people with whom you could interact socially. So perhaps there's an area which you will like with lower housing and residing expenses and will permit you to have the early retirement age you wanted.
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